DEBATE: Should retirement age be scrapped?

The new Pension Law, passed by the Senate last year, among other things saw the retirement age increased from 55 to 60 years. As a youth, I think this law should be changed and the retirement age lowered to 50 years.

Thursday, February 04, 2016

Pity the young generation

The new Pension Law, passed by the Senate last year, among other things saw the retirement age increased from 55 to 60 years. As a youth, I think this law should be changed and the retirement age lowered to 50 years.

Increasing the retirement age is having no pity for the poor youth. It should instead be lowered. The youth comprise the majority of the population, and with the increased literacy levels, unemployment and joblessness have become familiar and irritating words to their ears.

Old age is as old as it sounds, and some people want to work till they drop. No one ought to be told that they need to retire once they reach the dreaded retirement time. With our cursed mortal bodies, nobody maintains the same strength and energy. Think about what goes on in the mind of the young job seekers every time they are asked for 10 years experience before they can be given a job. Where do they expect them to get experience from if the ones supposed to be resting and enjoying their pension are super glued to their office chairs?

Why work so hard to educate your children and grand children if you cannot give way for them? They should let their grandchildren with fresh minds, energy and zeal work for them while they rest from their hard work. If the retirement age is increased, the cycle that would have been broken will go on forever. The cycle of ten years experience at the age of 40, and walking on the streets- in search for jobs will have no end for the youth.

Some will argue that the youth should create their own jobs; but why not let the old men and women do the same? If they are not satisfied with their pension, it is wise that they keep earning by creating their own jobs too, where they will still contribute to society, and enjoy the freedom of retirement without worrying about bills.

Different individuals may have different energy levels, but that shouldn’t stop them from retiring. A lowered retirement age will help exploit the young human resource and enable them plan for their present and future.

editorial@newtimes.co.rw

Experience is worth a great deal, and should be utilized

In 2015, the senate approved a bill that raised retirement age from 55 years to 60 years. The bill was received with mixed reaction from members of the public. Among the arguments, some people opposed the increase of the retirement age while others thought that it should have been set higher than 60 years.

For anyone who has ever worked, the thought of retirement can be nerve-wrecking. Not because they didn’t plan for it accordingly, but rather how to keep busy. Some people end up in farming or private consulting services, others set up shops, bars or supermarkets among others. But why can’t the retirement age be raised?

According to the National Institute of Statistics for Rwanda, life expectancy in the country is at 65 years while the retirement age is 60 years. Considering that most people spend their 20’s looking for jobs and if they are lucky, start to work productively towards their early-thirties. This gives them 20-45 years of working and when they have consolidated and gained the grip on the job at 60 years, it is not wise to have them retire at their prime!

At 65 years, most people are still productive and even run big organisations, so imagine how many people will be leaving off social security fund at the age of 61? Increasing the retirement would guarantee better standards of living during retirement period because then pensioners would get higher benefits due to the longer contribution periods.

For most people, retirement is a big dilemma because working makes them useful. Most writers, artists, academics, etc continue to work long after their retirement age. Life expectancy has increased in most countries and most jobs require less physical effort that they used to decades ago when retirement ages were set in most developed countries.  

For example, medical specialists, Supreme Court judges, pilots; all these people are at their best when they are in their 60’s because of massive experiences and some of them earn their education qualifications on government scholarships or grants. Imagine, what a country with two neurosurgeons would do if they retire at 60 years? This is a career that takes years of studies and practice.

Employing older workers brings in higher levels of experience, training and education. Also let’s not forget that companies want stability and reliability and older workers tend to possess this trait more than the younger generation.

 ‘Young Turks’ looking for jobs will argue that retirement age stays the same or even be lowered, but employers know that the ‘old guard’ have abilities they will not find in a fresh employee and the training costs are high. The raise in the retirement age is an asset to most companies, unless it is a very physical job. Experience is worth a great deal, and should be utilised.

editorial@newtimes.co.rw